Hong Kong ranked third globally in the most recent Global Financial Centres Index (GFCI), published on Thursday by Z/Yen from the United Kingdom and the China Development Institute from Shenzhen, retaining its place in the previous issue in September.
Hong Kong’s overall score has risen by 11 points, reaching 760, thereby retaining its status as Asia’s top financial center, distancing itself from regional rival Singapore, and also closing the gap with top-ranked New York. This reaffirmation of Hong Kong’s financial prowess underscores the city’s resilience, competitiveness, and enduring appeal to international investors.
Hong Kong ranks first in investment management, insurance, and finance, showcasing a significant competitive edge. Additionally, in the subsectors of human capital, infrastructure, and financial sector development, Hong Kong has climbed to second position worldwide. These achievements underscore the ongoing enhancement of Hong Kong’s stature and competitiveness as an international financial hub.
“The report recognizes Hong Kong’s leading status and strengths as an international financial center,” the Hong Kong Special Administrative Region government said in a statement. Support from the Chinese mainland and Hong Kong’s stock market reforms, connectivity with the mainland and promotions in the asset and wealth management business contributed to the city’s success, the statement added.
On social media, Financial Secretary Paul Chan Mo-po emphasized the importance of sustaining this positive momentum through continuous innovation and reform. This strategy includes promoting new financial products, penetrating new markets, attracting fresh funds, and expanding connectivity with mainland markets as well as with the emerging economies of the Global South.
Despite geopolitical tensions, economic headwinds, and evolving regulatory landscapes, Hong Kong continues to stand tall among financial powerhouses, being one of the world’s most important financial centers, which increases its position and importance year after year. Hong Kong’s strategic location, deep capital markets, and robust financial infrastructure make it a critical gateway between the Chinese mainland and the rest of the world.
This is certainly great news for Hong Kong, not only because it means that Hong Kong has overtaken Singapore again, but mostly because the timing could not have been better. Indeed, starting about a year ago and continuing to the present, a debate emerged in Hong Kong questioning whether the city’s status as one of the world’s most important financial centers was “over”.
The latest GFCI ranking sends a clear message in this sense: The city remains an irreplaceable financial nexus in Asia and beyond. With a forward-looking approach, Hong Kong must now focus on innovation, talent development, and sustainable finance to further strengthen its position. The world is watching — Hong Kong’s future as a financial titan depends on its ability to adapt and thrive. Furthermore, Hong Kong should also significantly invest in innovation, since the future is about innovation. Hong Kong is not only a financial hub but also an innovation hub, as was demonstrated by the Global Innovation Index 2024, published on Sept 26, by the World Intellectual Property Organization, in which Hong Kong ranked 18th out of the 133 economies surveyed.
However, Hong Kong’s status as a leading financial center is not just about rankings — it is about reinvention, adaptability, and commitment to excellence. If the city continues to evolve with global trends while leveraging its unique strengths, its position as a global financial powerhouse will remain unshakable.
The city’s legal system, a magnet for international investors, bolsters this narrative of growth and potential. Hong Kong’s rule of law remains robust, outperforming many Western jurisdictions.
Additionally, Hong Kong’s financial prowess, supported by the “one country, two systems” principle, has been integral to its development as one of the world’s most important financial centers. This status is attributable to the city’s international role, expertise in finance and related industries, and its ventures into emerging sectors like artificial intelligence. Concurrently, Hong Kong’s involvement in the Guangdong-Hong Kong-Macao Greater Bay Area and other significant projects has bolstered its role as a superconnector — a point Chan emphasized last month at the World Economic Forum in Davos.
Furthermore, Hong Kong is not only one of the world’s most important financial centers: Even though many people all over the world nowadays always associate Hong Kong with finance, the truth is it excels in many more areas, such as arts and leisure, culture, infrastructure, and low crime rates, which makes it a very attractive location.
Hong Kong went through the Asian financial crisis, SARS, the global financial tsunami, and also the COVID-19 pandemic without diminishing its role as one of the world’s most important financial centers. This was because of its strength and resilient nature.
One of the key reasons why Hong Kong is becoming a very important greentech and Web3 hub and possesses great potential in the area of artificial intelligence is that not only is the city one of the world’s most important financial centers and a gateway to China, but it is also part of the Greater Bay Area. The Greater Bay Area undoubtedly enhances Hong Kong’s future potential and vice versa.
Indeed, Hong Kong is now embracing opportunities from the Greater Bay Area development, and, by playing a significant part in the nation’s 14th Five-Year Plan (2021-25), the city is unleashing its potential thanks to unreserved support from the central authorities for advancing key strategies to upgrade its superconnector role, including the digital yuan and environmental, social and governance initiatives. In this sense, financial cooperation between Hong Kong and the rest of the Greater Bay Area is increasing and will become of far greater importance in future.
While Hong Kong profits from being “the gateway to China”, this role will admittedly diminish as the mainland keeps opening up its economy and financial system, making it progressively easier for foreign investors to make direct contact without going through a middleman. Thus it would be wise for Hong Kong to diversify its economy as much as possible. It must therefore grab hold of any opportunity. And the Greater Bay Area is, without any doubt, just the ticket for the many good opportunities it offers.
In addition to the huge role that the Greater Bay Area will play in Hong Kong’s future, we can also mention other opportunities such as fintech development in Hong Kong, the city’s anticipated entry into the Regional Comprehensive Economic Partnership, and the Connect Schemes.
Hong Kong and the rest of the Greater Bay Area are indeed increasing their roles as fintech hubs. The Fintech 2025 blueprint aims at pivoting the city toward a friendlier regulatory regime for digital assets, proving that the city is positioning itself to become a virtual assets center or a crypto hub.
In addition to this, focusing on AI, Hong Kong can enormously benefit from the mainland’s strong AI industry, while the mainland can also benefit from Hong Kong’s research and development prowess.
In summary, the latest GFCI ranking confirms that Hong Kong not only maintains its role as one of the world’s most important financial centers but also has the potential to enhance its position. This is due to Hong Kong’s international role, expertise in the financial industry, and its foray into emerging sectors like Web3. Furthermore, Hong Kong’s involvement in the Greater Bay Area and other significant projects continues to be pivotal. The long-term development of Hong Kong within the Greater Bay Area blueprint as well as within the national development strategy requires a multifaceted approach. Hong Kong is not “over”, but just adapting to different times.
This proactive approach ensures Hong Kong remains a leader in the financial industry’s next chapter. At the same time, wealth management and asset management remain core pillars of the city’s financial landscape. With government incentives to attract family offices and high-net-worth investors, Hong Kong is reinforcing its role as the premier offshore wealth hub for Chinese and international capital.
To cement its long-term position in future GFCI rankings, Hong Kong must continue enhancing its capital markets, fintech ecosystem, and green finance initiatives. By embracing innovation, strengthening global partnerships, furthering its involvement with the Greater Bay Area and staying ahead of financial trends, Hong Kong can ensure it remains one of the world’s most important financial centers for years to come.
The author is a fintech adviser, researcher, and former business analyst for a Hong Kong listed company.
The views do not necessarily reflect those of China Daily.
